TO:	Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB3750 by Lucio III (Relating to financial assistance by the Texas Water Development Board for backup power generators in economically distressed areas for public water supply and sanitary sewer systems.), As Engrossed

The bill would amend the Water Code to add the installation, operation, maintenance, and fueling of backup power generators for water supply and sewer service as eligible uses of the economically distressed areas account. An eligible political subdivision would be required to demonstrate it is unable to pay for such costs on its own, and the Texas Water Development Board (TWDB) would be able to seek reimbursement if it determines a recipient is ineligible. The bill would take effect September 1, 2021. 

Based on information provided by TWDB, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.